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Pdfcir V. SEPTA Case 2:18-cv-01839-MMB Document 55 Filed 11/28/18 Page 1 of 92 IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA THE CENTER FOR INVESTIGATIVE CIVIL ACTION REPORTING NO. 18-1839 v. SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY MEMORANDUM OPINION Baylson, J. November 28, 2018 Case 2:18-cv-01839-MMB Document 55 Filed 11/28/18 Page 2 of 92 TABLE OF CONTENTS I. INTRODUCTION ............................................................................................................. 1 II. FACTUAL BACKGROUND ........................................................................................... 1 A. Initial Proposed CIR Advertisement ................................................................................. 1 B. SEPTA's Rejection of the Proposed Ad ........................................................................... 4 c. Revised Advertisement and Second Rejection .................................................................. 5 III. PROCEDURAL BACKGROUND ................................................................................. ;. 5 IV. EVIDENCE ....................................................................................................................... 7 A. Preliminary Injunction Evidence ....................................................................................... 7 B. Benedetti' s Trial Testimony .............................................................................................. 7 1. Impact of AFDI Litigation ............................................................................................ 8 2. SEPTA' s Application of Standards, Including the Challenged Provisions .................. 9 3. Interpretation of the Challenged Provisions ............................................................... 12 4. Digital Displays/News Feeds ...................................................................................... 13 5. Asserted Inconsistencies in Benedetti's Testimony and Other Evidence ................... 14 c. Other Exhibits and Depositions ....................................................................................... 17 D. Examples of Ads Accepted and Rejected by SEPTA ..................................................... 18 E. Advertisements by Banks ................................................................................................ 22 v. PARTIES' CONTENTIONS .......................................................................................... 23 A. CIR' s Contentions ........................................................................................................... 23 1. Standards are Not Capable of Reasoned Application ................................................. 24 2. The Challenged Provisions are Not Viewpoint Neutral on their Face or As Applied 25 3. Standards are Not "Reasonable" in Light of the Purpose of the Forum ..................... 25 4. SEPTA's Advertising Space is a Designated Public Forum, and the 2015 Advertising Standards Do Not Satisfy Strict Scrutiny .............................................................................. 26 Case 2:18-cv-01839-MMB Document 55 Filed 11/28/18 Page 3 of 92 B. SEPTA's Contentions ..................................................................................................... 27 1. The Advertising Space on Buses is a Non-Public Forum .......................................... 27 2. The Advertising Standards are Reasonable ................................................................ 27 3. The Advertising Standards are Viewpoint Neutral. .................................................... 30 VI. FINDINGS OF FACT ..................................................................................................... 32 A. General ............................................................................................................................ 32 B. SEPTA'S Response to AFDI Ad .................................................................................... 34 C. SEPTA's Process for Reviewing Proposed Advertising ................................................. 36 D. Bank Advertisements ...................................................................................................... 43 E. SEPT A's Denial of CIR's Proposed Advertisement ....................................................... 45 VII. DISCUSSION OF LAW ................................................................................................. 49 A. Forum Analysis ............................................................................................................... 49 1. Defining the Forum and Type of Forum .................................................................... 49 2. The Advertising Space on SEPTA Buses is a Non-Public Forum ............................. 54 B. The Standards and Burden Applicable in a Non-Public Forum ...................................... 57 C. CIR's Facial Attack on Whether the Challenged Provisions Are Capable of Reasoned Application Under Mansky ....................................................................................................... 58 1. Language That Must be Stricken as Incapable of Reasoned Application .................. 59 2. Meet and Confer Requirement ................................................................................... 61 D. CIR's Facial Attack on the Restrictions (as to be Amended) ......................................... 62 1. NAACP v. City of Philadelphia ................................................................................. 62 2. Transit Authorities Advertisements as a Subset of First Amendment Jurisprudence 65 3. The Special Circumstances of a "Captive Audience" on Transit Vehicles ................ 66 4. SEPT A as a Government Actor .................................................................................. 67 11 Case 2:18-cv-01839-MMB Document 55 Filed 11/28/18 Page 4 of 92 5. Decisions on Transit Authorities' Speech Regulations in the Third Circuit .............. 69 6. Decisions on Transit Authorities' Speech Regulations Outside of the Third Circuit 71 7. SEPT A's Restrictions (as to be Amended) Are Reasonable in Light of the Purpose of the Forum .............................................................................................................................. 72 E. Content-Based, Viewpoint Neutral Restrictions of Advertisements in Transit Vehicles Do Not Offend the First Amendment ....................................................................................... 75 1. SEPTA's Restrictions (as to be Amended) Are Viewpoint Neutral on Their Face ... 78 2. SEPT A's Restrictions are Viewpoint Neutral as Applied .......................................... 80 a. SEPT A's Acceptance of Public-Service Advertisements .......................................... 81 b. SEPT A's Acceptance of Bank Advertisements is Not Accepting Viewpoint Advertisements and SEPT A's Rejection of CIR's Advertisements was Reasonable ........... 84 VIII. CONCLUSION ............................................................................................................... 88 111 Case 2:18-cv-01839-MMB Document 55 Filed 11/28/18 Page 5 of 92 I. INTRODUCTION Southeastern Pennsylvania Transit Authority ("SEPTA") has been operating the mass transit system in Philadelphia since 1964. It operates bus, subway, commuter rail, light rail, and trolley service to Philadelphia and Delaware, Montgomery, Bucks and Chester counties, with some train service to Wilmington, Delaware and Trenton, New Jersey. This case concerns the advertising space on the inside of SEPTA buses. SEPTA's bus network serves the many neighborhoods of Philadelphia and suburbs. Many residents of Philadelphia, particularly those for whom private vehicles, taxis or other forms of transportation are inaccessible or too expensive, rely on SEPT A buses, trolleys, and subways for daily transportation. The viability of this public transit system is thus of critical importance in a city of over 1.5 million, where more than 25% of residents live below the poverty rate. QuickFacts: Philadelphia City, Pennsylvania, U.S. CENSUS BUREAU https://www.census.gov/quickfacts/philadelphiacitypennsylvania (July 1, 2017) II. FACTUAL BACKGROUND A. Initial Proposed CIR Advertisement Plaintiff, The Center for Investigative Reporting ("CIR") is a nonprofit investigative journalism organization based in Emeryville, California. (10/01/18 Trial Ex. 11.) Its mission notes that "Advances in social justice, solutions to pressing problems, and greater accountability in both the public and private sectors all rely on the availability of credible information. Verifiable, nonpartisan facts empower the public to effect positive change, advancing improved outcomes for a broad range of critical issues." (Id.) CIR's reporting is published on its news website Reveal (www.revealnews.org), as well as on its national radio show, podcast, video, and live events. (ECF 1, "Compl."~ 11.) 1 Case 2:18-cv-01839-MMB Document 55 Filed 11/28/18 Page 6 of 92 On February 15, 2018, CIR published the results of a year-long investigation into disparate lending trends throughout the country. (Trial Ex. 4.) The results of this investigation showed that in 61 metropolitan areas, applicants of color were more likely to be denied conventional home purchase mortgages. (Id.) CIR used the information from this investigation to create a 10-panel comic strip entitled "A Stacked Deck." (Trial Ex. 7.) In January 2018, a designer from CIR emailed Jon Roche, Vice
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